Why do Capital Radio and GWR want to merge?
Big is beautiful in the commercial radio sector, in part because super sized radio groups can use their bigger muscle to push the development of digital radio forward at a higher pace, spurring growth and bringing in more listeners and advertisers. If the merger was to go ahead, Capital and GWR would immediately reach more than a third of the current radio audience with their 93 digital and 55 local analogue radio stations. This would be so attractive to advertisers that they might be happy to pay even more than they do now, and the new and larger group should become even more profitable than the two separate companies already are. A merger would also bring about cost savings, possibly to the tune of 8m according to one estimate, as sales and administrative teams are merged and possibly cut. Over time, the new group should be able to provide a broader choice of music entertainment. This could come in the form of more niche digital radio stations which are relatively easy to launch give
